Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Geneva Finance Announces Its One for Four Rights Issue

Media Release 23 November 2012

Geneva Finance Announces Its One for Four Rights Issue Settles in Full

NZAX-listed auto loan provider GFNZ Group Ltd (Geneva) having successfully placed $1.2m of ordinary shares to Federal Pacific Group Limited (FedPac) in March 2012, advises that its 1:4 rights issue, raising a further $1.5million of equity has settled.

This equity placement, further strengthens Geneva’s balance sheet and represents another milestone in the company’s development, which over the last four years, has seen Geneva work hard to reposition and rebuild its operations. Other significant milestones include:

• Repayment of more than $133.3m of debt funding to investors (including interest of 11.0% per annum to public debenture holders);
• Reduced group operating costs, since November 07, by more than $29m per annum;
• Acquisition of the Quest Insurance and Stellar debt collection operations to complement core financing activities;
• Implementation of online internet-based scorecards and loan application systems for introducers;
• Restructure of its operations to allow the new business model to focus on a market segment that offers attractive yields that carry considerably less risk.

Geneva Managing Director David O’Connell says:

“The $1.2m placement in March 2012, and the $1.5m raised under this issue have collectively increased Geneva’s net shareholders funds by 28%. This is another significant step forward. It will assist the company source the new funding lines, core to expanding the new business model while maintaining our scheduled debt repayment program.”

Under the rights issue Geneva has issued a further 56.2 million ordinary shares, of which 357 small shareholders were allocated 6.6m on the 19th November. FedPac were allocated the remaining 49.6m shares today, raising it’s total stake in Geneva to 33.7%.

Each of the shareholders (including FedPac) who acquired shares under the rights issue, has also been allocated two options (for every three shares acquired) to subscribe for new shares, at 8.00 cents per share within a 30 day period commencing three years after their allocation date.

The rights issue and FedPac’s underwrite agreement were approved at the shareholders meeting held on 6th November 2012.


About Geneva
Geneva is a New Zealand-owned finance company that provides finance and financial services to the consumer credit and small to medium business markets. Geneva commenced business on 7 October 2002. Geneva's loans are originated through three distribution channels (Direct, Broker and Dealer), processed by the central sales desk then administered through a national operations centre located at Mt Wellington, Auckland.
The company borrows money by the issue of debenture stock. It also has a banking facility with BOS International (Australia) Limited.
Geneva (GFL) is listed on the NZAX. Following the rights issue, there are 280,872,249 issued shares held by 2,629 investors.

About Federal Pacific

FedPac’s operations throughout the Pacific region include investments in Banking, Personal and Business Finance, Money Transfer and Foreign Exchange Trading. The company was incorporated in 1993 and is based in Auckland, New Zealand.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news